May 29, 2002: Libya offers $2.7 billion to compensate the families of the 270 killed in the 1988 bombing of Pan Am flight 103.

The offer comes with conditions: Forty percent is to be paid when United Nations sanctions are lifted from Libya; another 40 percent is to be paid when U.S. sanctions are lifted; and the remaining 20 percent is to be paid when Libya is taken off the U.S. list of states sponsoring terrorism. Libya's government quickly denies having made the offer, saying it might have come from an unauthorized source. Some of the victims' families say they would refuse it even if it were official.